President Introduces Escrow System for Housing Transactions
A new system is being implemented in Uzbekistan to protect homebuyers from unscrupulous builders.
Instead of giving money directly to builders, individuals looking to purchase homes will now deposit their funds directly into banks. This guarantees that buyers will not lose their money if construction is not completed as promised.
The decision to introduce this system came after a meeting led by President Shavkat Mirziyoyev, during which concerns were raised about increasing disputes between builders and homebuyers. Many individuals have been left without homes and funds after being deceived by dishonest builders.
To address this issue, a working group led by the Minister of Construction studied foreign experiences and proposed the implementation of a guaranteed escrow system for purchasing housing. Builders will enter into contracts with banks for the sale of homes, and the banks will provide the necessary funds to the builders. This arrangement ensures that homes are constructed on time and to a high standard before being handed over to buyers.
The new system will be piloted in the New Hayat and Sergeli districts of Samarkand city for one year. This initiative aims to protect homebuyers and improve trust in the construction industry by holding builders accountable for their promises.
